Magic Recipe Screen

Quality Businesses at Low Valuations

The "Magic Recipe Screen" is designed to find stocks of quality businesses selling at low multiples of free cash flow. Inspired by Joel Greenblatt's "Magic Formula Investing" (as described in The Little Book that Beats the Market), this combination has been shown to produce market-beating investments over short-term time horizons (1 year or less).

All stocks in this screen meet the following critiera:

  1. Return on Equity over 15% and Return on Assets over 3%. (quality business)
  2. Debt-to-Equity ratio under 1.0. (financially healthy)
  3. Price-to-Free Cash Flow ratio under 15. ("cheap" valuation)

Results for 2021-04-09

Columns are sortable. For stocks with MagicDiligence ratings, members can click the ticker to read our full review.

Ticker Company Market Cap Rating
ALL The Allstate Corporation 35,121
APT Alpha Pro Tech, Ltd. 128
ATEN A10 Networks, Inc. 723
BBY Best Buy Co., Inc. 30,374 green dot
BC Brunswick Corporation 7,629
BGFV Big 5 Sporting Goods Corporation 355
BIG Big Lots, Inc. 2,342
BIIB Biogen Inc. 41,003
BMA Banco Macro S.A. 1,359
BPMC Blueprint Medicines Corporation 5,417
CCRC China Customer Relations Centers, Inc. 115
CCS Century Communities, Inc. 2,119
CHKP Check Point Software Technologies Ltd. 15,943
CI Cigna Corporation 85,458
CIG Companhia Energetica de Minas Gerais 3,653
CMCL Caledonia Mining Corporation Plc 162
CODX Co-Diagnostics, Inc. 260
CRD-B Crawford & Company 563
DGX Quest Diagnostics Incorporated 16,764
DHIL Diamond Hill Investment Group, Inc. 509
DHT DHT Holdings, Inc. 1,020
DKS DICK'S Sporting Goods, Inc. 7,047
DLTR Dollar Tree, Inc. 27,091
EBS Emergent BioSolutions Inc. 4,761
EDUC Educational Development Corporation 143
ELP Companhia Paranaense de Energia - COPEL 3,316
ESGR Enstar Group Limited 5,572
EVR Evercore Inc. 6,175
EXP Eagle Materials Inc. 5,791
FAF First American Financial Corporation 6,490
FFHL Fuwei Films (Holdings) Co., Ltd. 32
FIX Comfort Systems USA, Inc. 2,821
FKWL Franklin Wireless Corp. 158
FLWS 1-800-FLOWERS.COM, Inc. 1,695
FNF Fidelity National Financial, Inc. 12,522
FRHC Freedom Holding Corp. 2,952
GFI Gold Fields Limited 7,974
GIB CGI Inc. 18,745
GNE Genie Energy Ltd. 161
GTN Gray Television, Inc. 1,815
HCSG Healthcare Services Group, Inc. 2,109
HEAR Turtle Beach Corporation 431
HELE Helen of Troy Limited 5,136
HGBL Heritage Global Inc. 103
HII Huntington Ingalls Industries, Inc. 8,403
HLI Houlihan Lokey, Inc. 4,401
HOLX Hologic, Inc. 18,982
HUM Humana Inc. 54,732
HVT Haverty Furniture Companies, Inc. 710
HZO MarineMax, Inc. 1,078
IESC IES Holdings, Inc. 1,055
IMKTA Ingles Markets, Incorporated 1,243
INVA Innoviva, Inc. 1,185
KFRC Kforce Inc. 1,207
KGC Kinross Gold Corporation 8,875
KIRK Kirkland's, Inc. 444
LAKE Lakeland Industries, Inc. 228
LFVN LifeVantage Corporation 127
LH Laboratory Corporation of America Holdings 25,093
LINC Lincoln Educational Services Corporation 171
LL Lumber Liquidators Holdings, Inc. 742
LPX Louisiana-Pacific Corporation 6,405
MATX Matson, Inc. 3,155
MCY Mercury General Corporation 3,489
MHH Mastech Digital, Inc. 194
MHO M/I Homes, Inc. 1,716
MLI Mueller Industries, Inc. 2,456
MTH Meritage Homes Corporation 3,479
MTZ MasTec, Inc. 7,308
NEWA Newater Technology, Inc. 36
NLS Nautilus, Inc. 483
NUS Nu Skin Enterprises, Inc. 2,638
OPRA Opera Limited 1,175
PGR The Progressive Corporation 56,023
PHM PulteGroup, Inc. 14,149
PJT PJT Partners Inc. 2,381
PRDO Perdoceo Education Corporation 808
PRIM Primoris Services Corporation 1,844
QDEL Quidel Corporation 5,119 gray dot
SAGE Sage Therapeutics, Inc. 4,355
SCPL SciPlay Corporation 2,089
SENEA Seneca Foods Corporation 457
SFM Sprouts Farmers Market, Inc. 3,102
SIGA SIGA Technologies, Inc. 535
SONY Sony Group Corporation 138,444
SPKE Spark Energy, Inc. 368
SPWH Sportsman's Warehouse Holdings, Inc. 756
STC Stewart Information Services Corporation 1,530
SUPN Supernus Pharmaceuticals, Inc. 1,468
SURF Surface Oncology, Inc. 320
SWBI Smith & Wesson Brands, Inc. 930
THRY Thryv Holdings, Inc. 752
TLK Perusahaan Perseroan (Persero) PT Telekomunikasi Indonesia Tbk 22,819
TNET TriNet Group, Inc. 5,258
TNK Teekay Tankers Ltd. 446
TOMZ TOMI Environmental Solutions, Inc. 63
UHS Universal Health Services, Inc. 11,669
USNA USANA Health Sciences, Inc. 2,119
UTHR United Therapeutics Corporation 7,878
VHC VirnetX Holding Corp 378
WGO Winnebago Industries, Inc. 2,446
WOR Worthington Industries, Inc. 3,404
WSM Williams-Sonoma, Inc. 13,740 gray dot
WYY WidePoint Corporation 77
ZUMZ Zumiez Inc. 1,186

New this week: